Rising crop prices can be 'good news' for farmers: UN/OECD
Posted by Zawya
AFP
ROME, Jun 15, 2010


(AFP) - Farm commodity prices are set to rise in the next 10 years, which will be "good news for farmers" if matched by appropriate policies, the UN food agency and the OECD club of wealthy nations said Tuesday.

"The medium-term outlook suggests that most agricultural prices will be higher in real terms in the coming decade," OECD Secretary General Angel Gurria told a news conference, adding: "This is good news for the world's farmers."

However, he stressed: "Governments can help by making sure that the institutions, policies and technologies are available to allow (farmers) to invest in increasing productivity."

UN Food and Agriculture Organisation (FAO) chief Jacques Diouf agreed, saying: "It's not a question of the number of people, it's a question of technology, investment and policies."

He noted that while only two percent of the populations of developed countries produce their food needs, "in developing countries you need 60 to 80 percent of the population to produce, and it's still not enough to feed the people."

Gurria and Diouf were presenting "Agricultural Outlook," a joint annual report of the FAO and the OECD, which states that "on a per capita basis, production growth in least developed countries is struggling to keep up with rapid population growth."

Diouf singled out China, Brazil, India, Russia and Ukraine as countries where "we see the highest growth in their production," praising them for "taking many of the good policies that are required."

The long-term outlook for food production is positive, the report said.

"Global agricultural production is anticipated to grow more slowly in the next decade than in the past one, but in the absence of unexpected shocks, growth remains on track with estimated longer-term requirements of a 70 percent increase in global food production by 2050."

Nevertheless food insecurity remains a concern with memories still fresh of riots in several countries around the world in 2008 over soaring food and fuel prices.

The report urges stepped-up agricultural production and productivity and says that a "well-functioning, rules-based trading system will be crucial to fair competition and to ensure that food can move from surplus to deficit production areas."

Emerging economies will drive growth in world agricultural production, consumption and trade, the report says. "Demand from developing countries is driven by rising per capita incomes and urbanisation, reinforced by population growth, which remains nearly twice that of the OECD area," it noted.

Gurria, mentioning dietary shifts from mainly carbohydrate to much more protein, said: "Any global picture you have to take a hard look at China because China is shaping these global trends."

gd/hyd

© Copyright AFP 2010.

News Link: http://www.zawya.com/Story.cfm/sidANA20100615T122645ZCUS85/Rising%20crop%20prices%20can%20be%20%27good%20news%27%20for%20farmers%3A%20UN%2FOECD